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Malaysia’s palm oil to reap benefits from Brexit

A worker unloads palm fruit at a local palm oil factory in Langkat in Indonesia’s north Sumatra province in this file photo taken October 31, 2012. — Reuters picA worker unloads palm fruit at a local palm oil factory in Langkat in Indonesia’s north Sumatra province in this file photo taken October 31, 2012. — Reuters picKUALA LUMPUR, March 30 — Malaysia’s food exports, especially palm oil, stands to reap trade opportunities through the changes created by the United Kingdom’s (UK) departure (Brexit) from the European Union (EU). 

Glenreagh Sdn Bhd managing director Nordin Abdullah said there would be increased opportunities for Malaysian companies with the capacity to operate in highly regulated and competitive environments.

“It is no secret that certain countries in the EU are less receptive to imports of palm oil for protectionist reasons.

“Malaysia can now relook at how they deal with the issue as regulations and attitudes can change post the UK’s departure,” he said in a statement today.

Nordin said in the short-term, both the UK and EU economies would be competing for increased trade and investments with external parties.

“What we are seeing now is the opening rounds of a negotiation which is expected to take two years before a final deal is reached. 

“It may be counterproductive to react too quickly and on every report. There is still a long way to go,” he added.

In February, Malaysia’s export of palm oil to the EU and the UK stood at 153,165 tonnes and 1,759 tonnes respectively. — Bernama 

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